It is common practice for two or more parties to enter into an arrangement with respect to the joint development and operation of certain upstream assets. There are several reasons to pursue a joint venture, including a strategic location of assets, cost sharing or a certain expertise that each party can bring to the joint venture. The slides linked below provide a general overview of the characteristics and features of various joint venture deal structures in the upstream oil and gas industry. These features are illustrated through a discussion of the financial rights and obligations under different deal structures, in addition to a discussion of relevant property law issues, entity types, tax treatment and environmental considerations. Summaries of several recent and representative transactions are also included to provide real-world examples of these structures. Those individuals or entities considering the entry into a joint venture should consult their legal advisors in order to fully understand and best navigate the potential transaction.
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